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8×8 acquires Voicenet Solutions for $18.4m November 11, 2013

Posted by Matthew Townend in Uncategorized.
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Today 8×8 announced they had signed a definitive agreement to acquire Voicenet Solutions in the UK. Voicenet have been one of the most successful UK VoIP business with over a 100 UK businesses using their services and over 35,000 users.

This latest announcement follows the recent news from RingCentral one of the other major players in the US , that they are entering the UK market. Voicenet had been rumoured to be considering purchasing a new Softswitch so this acquisition will give their users access to 8×8 award winning platform and will broaden the services they can offer them. Kevin Scott-Cowell the CEO of Voicenet highlighted the opportunity to offer a broader set of services as well as addressing the increasing multinational requirements as key reasons for the acquisition.

For those readers who don’t know know 8×8 they are regarded as a leading light both amongst the investor and analyst community in the US. In there last financial results they had revenues of over $30 million and a Market Capital of over $700 million. a valuation lots of companies look to reflect.

illlume has had a long standing relationship iwth the team at Voicenet & wish Kevin and his team every success as this looks like a great deal for both sides.


UK IP/SIP Market Continue to Grow Strongly February 12, 2013

Posted by Matthew Townend in Uncategorized.
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illume completed its survey of VoIP Service provider in January, the survey showed that the SIP/IP trunking market shows no sign of slowing down with growth of 25% June-December 2012. The market was 757,928 trunks at the end of 2012, a growth of 60% year on year.

The survey saw strong performance among key players in the market and an increasing focus from Softswitch vendors such as Broadsoft, Genband & Cisco on the need for their story to incorporate SIP/IP trunks alongside Hosted services.

We explored with the providers what were the key customer drivers and although costs versus ISDN is still the most important there is an increasing understanding that other benefits such as “Flexibility” & “Business Continuity” are also key.  Among the providers serving the larger enterprises we also saw the importance of SIPT as an enabler for Unified Communications growing in importance.  

In the coming year we expect to see more focus on what applications can be layered on top of a SIP trunk,  and how Services Providers can really address Hybrid Hosted & SIP environments and bring benefits of Unified Communications to both traditional PBX & hybrid customer scenarios.

This year we saw a number of new entrants in to the SIP market and a number of new announcements. In December we saw the launch from Talk Talk business of their “Next Generation ISDN30 service” which caught our eye. In effect this service utilises a SIP network and a gateway to deliver a customer the choice to terminate; ISDN, SIP or a mix of channels, bringing the customer some of the flexibility and service benefits associated with SIP to a traditional ISDN environment. We have seen this approach used in other international markets; recently we have been working in the South African market where a number of competitors to Telkom used this approach to attack existing ISDN market, effectively offering like for like services.

One of the other issues on everybody’s lips has been what the impact of Microsoft Lync is, our survey showed that less than 20% of providers had tested with Lync. The providers who have been approved for Lync, indicated that although they had seem some business coming through it was still a relatively small percentage of their overall base, although having the capability had opened up a number of customer discussion they may not have had if they were unable to offer such a capability. Microsoft are clearly generating a lot of enterprise interest behind Lync but its still unclear if it will really replace the PBX.

2013 Forecast & Report

illume and its parent company Cavell are investing in its research capability this year and plan to expand its portfolio and team . On the 19th of February we will launch our annual Hosted VoIP Forecast and report & our SIP/IP trunking report & forecast both of which will enter into more detail on the issues discussed above as well as providing our forecast for the market. If you would like to find out more about Cavell or our research capabilities please visit www.cavellgroup.com or email Matt Townend matthew.townend@cavellgroup.com

UK IP/SIP Trunking Market reaches 570,232 July 23, 2012

Posted by Matthew Townend in VoIP Numbers.
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Following the completion of illumes biannual industry research, we can report that the IP/SIP trunking market has reached 570,232 trunks. This figure represents  continued strong growth from the previous period, and shows no signs of slowing up with Service Providers reporting strong funnels in the coming months.

We also looked at where this base was being sold in terms of company size please see chart below:

As you can see by the chart above the market is still dominated by large organisations, who generally have delivered IP/SIP trunks over quality enabled networks. However we are starting to see the impact of both EFM and FTTC  technologies, which will open up the SME opportunity further.

Also Enterprise provider were starting to see customer utilise Microsoft Lync as a replacement to an onsite PBX, and 60% of providers we undertaking testing of Microsoft Lync with their SIP/IP Trunking solutions.

We will be updating our Market reports in August to reflect this latest report. To find our more about our research please go to http://www.illumeconsulting.co.uk/research.shtml

illume launches annual IP/SIP trunking Report & Forecast April 12, 2012

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Today we launched our annual IP/SIP Trunking market report, last year had been a really exciting period for the SIP market. We saw new entrants such as Zen, Virgin media enter the market and continued strong growth from the early market entrants. As we see the active roll out of FTTC & EFM the previously difficult mid market is now open for business as far as SIP/IP Trunking is concerned. Also in the report we discuss the changing propositions that we have seen from providers in the last 12 months. We are still forecasting strong growth in 2012, and expect still more market entrants.

To find out more details about the report visit: http://www.illumeconsulting.co.uk/research.shtml#1

IP Trunks growth accelerates to 456.000 trunks February 9, 2012

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illume latest research showed that at the end of 2011 the IP trunks market reaches 456,000 trunks in the UK, demonstrating an annual market growth of around 98% in 2011.

This was slightly behind illumes forecast, one of the main issues was illume forecasted that BT Business would have entered the market by nowected entry to the market by the likes of BT Business. However BT business are now , however it is clear they are now looking to take on customers to trial their SIP trunking service http://business.bt.com/broadband-and-internet/leased-lines/sip-voice-trunking/ implying that the launch will be soon.

The other interesting trend we are seeing is the growth in the use of SBC Session Border Controllers in the deployment of enterprise SIP trunks. A recent interview with one of the large SBC players indicated that upwards of 20% of revenue was now being generated from Enterprise customers.

illume will be publishing its annual report and forecast on the SIP trunk market at the end of February, where we will explore the market trends in more detail.

Ofcom Comms report soundbites and Surprises October 1, 2011

Posted by Matthew Townend in Uncategorized.
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As usual I have been reading the Ofcom communications report which was published in August. This is a great source of data, two points particularly stood out:

– Decline in Fixed Business Voice revenues slowed
– ISDN 30 channels continued to decline strongly

Ourselves like many analysts have predicted strong decline in fixed voice revenues, as they are substituted by mobile and cheaper services like Skype. However in 2010 the decline slowed to only 2% year on year from previous years of 5% & higher.

ISDN 30 channels dropped by 300,000 to 2.7m reflecting the significant impact SIP trunking is having on the traditional ISDN market. This decline is reflected in the SIP trunking market report we recentally published. at http://www.illumeconsulting.co.uk

Hosted VoIP breaks 600,000 seats February 18, 2011

Posted by Matthew Townend in Uncategorized.
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Hosted VoIP Market Breaks 600,000 seats at year end
Well the year ended for Hosted VoIP with a buoyant 4th quarter, with the year ending on 613914 hosted VoIP seats deployed. I guess the themes of the year are as follows:
Large Players enter the market: This year we saw a market entry by Vodafone and BT Wholesale, also we have seen momentum from both Cable & Wireless and Virgin business. So this year we saw a large increase in the channel capacity for Hosted VoIP
Broadsoft & Hipcom Winners in Supplier market: This year we also saw more consolidation in the Soft switch market, with both Gamma & Inclarity choosing to move to a Broadsoft switch. Also we have seen significant progress from Hipcom announcing BT Wholesale, Star and recently Kingston with BT on their platform which incorporates Broadsoft
Number Porting: As we interviewed providers for our annual reports coming out next week, we found that there were still large issues with number porting, as the systems that were originally setup when there were 4 providers creak under the pressure. I am sure this is an issue that is going to come more and more to the fore this year.
Thanks to all the providers who continue to support our research efforts. As I mentioned above our annual SIP Trunking and Hosted reports will be published next week.